Navigating the profit turn: Bajaj leaves TVS Motor in the rearview

Pune-based 2W maker outrides TVS Motor with sharper margin gears

There is not much to fault in the October-December quarter results of the country’s two largest listed two-wheeler exporters — Bajaj Auto and TVS Motor Company. While the operational performance for both was strong, the latter missed estimates of some brokerages by a small margin. Although export recovery will be a key monitorable for both companies, Bajaj Auto’s margin performance despite the inferior product mix has been a talking point.

Analysts at Elara Securities, led by Jay Kale, state, “Bajaj Auto’s margin resilience has been impressive despite an adverse mix (three-wheeler volume contribution down 300 basis points, or bps, sequentially).